The first blocks of an isolation wall were erected around the largest Palestinian refugee camp in Lebanon this week, as a plan to build security cordons and watchtowers around Ein al-Hilweh came into effect.

The isolation wall is set to be completed within the next 15 months, according to a report by Lebanon-based al-Modon news site.

For thousands living in the overcrowded camp of Ein al-Hilweh, located southeast of the port city of Sidon, life will only get from bad to worse due to the separation fence.

Angry Palestinian refugees dubbed the fence "the wall of shame" and compared it to Israeli apartheid walls in the occupied Palestinian territories.

Authorities in Lebanon maintain the security watchtower will enable the army to better control the camp amid claims that militants seek refugee there.

However, observers compared the wall to an open-air prison inside which Palestinian refugees will be confined.

Ein al-Hilweh camp, covering an area of one square kilometer, is home to over 80,000 Palestinian refugees, who were recently joined by thousands of displaced Palestinians fleeing warfare in beleaguered Syria.

Shots were fired towards Israeli forces in Israel from a passing vehicle beyond the border in Lebanon, injuring a soldier, and Israeli army spokesperson said Wednesday shortly after noon.

Israeli forces responded with fire and a "hit was identified," the spokesperson said in a statement. The injured Israeli soldier was evacuated.

Israeli news site Ynet reported that the soldier was in a "light condition" after sustaining shrapnel wounds to the hand.

The incident came after an Israeli contractor was shot and killed on Tuesday afternoon near the Egyptian border while doing maintenance work, with Israeli media saying it was not a result of an attack but a "misunderstanding."